Economy Improves, But Where Are The Job's

The U.S. economy posted its first full quarter of growth for the first time in two years the problem is that joblessness still has a vice lock grip on economic growth. This should be no shock to those that are unemployed and looking for any sign of a meaningful job. Washington can claim whatever credit it wants but it still continues to hamper any effort to stimulate the economy.

It can ease financial credit to small businesses but it continues to place road blocks in the path of businesses that stifle the very engine of economic growth. Small businesses account for almost eighty percent of all employment, but Washington still over taxes, places a byzantine layer of regulation compounded by confusing language of environmental laws that only keep businesses from expanding.

Washington needs to stop listening to corporate America and start listening to the real engine of growth that will bring back prosperity that most Americans remember. Corporate America consistently over the years failed to implement basic business practices that would have them re-invest back into their company and not into their pockets.

The manufacturing industry like Washington has run itself into the ground! The steel companies receive billions of dollars of subsidies to be used for upgrading and retooling the factories that produce quality steel at a reasonable price that allows them to compete with foreign competitors. Instead it pockets the money, fails to upgrade its factories which now are close to thirty to forty years old, and produce quality steel at a higher price which prices them out of the market. One only needs to look at California’s Bay Bridge project.

The auto industry is another example of failed manufacturing policy that focuses more on profit then maintaining industry innovation that produces a quality product at reasonable price that the public wants to buy.

For years I always bought a Ford vehicle until I bought a Ford Ranger Pickup. I spent more time having it repaired an always it needed to be sent back because Ford mechanics never repaired it right the first time. Complaining to Ford Motor Corporation was a futile battle and as I stated to them you forced me to buy a foreign vehicle which I then purchased a Toyota truck.

Organized labor is not exempt from this as they have failed the laws of economics and bankrupt the auto industry with unreasonable benefits that could not be sustained over time.

America needs to get back to the basics of what made this nation great and face the fact that a decline will be precipitated by our own arrogance.

President Signs $680 Billion Defense Bill

President Barack Obama signed a massive $680 Billion Dollar Defense Bill that continues spending on the ongoing conflicts in Iraq and Afghanistan, but also cuts unnecessary programs and wasteful spending, while allowing our military to be able to protect the nation.

First did anyone read this bill before it was signed! The question I would like to know is this defense bill reflected in the current long term strategy as it relates to national security? Have we eliminated cost overruns on weapons systems that are engrained in the defense establishment or we just going back to business as usual but now with just with a different party in power.

Almost a half trillion dollars is now spent on the Defense Department more than almost the whole world combined. The Center for Strategic and Budgetary Assessments states by 2018 the interest on the national debt will exceed the annual defense bill.

Washington should remember the statement by President Eisenhower in his farewell address by warning of the “Military Industrial Complex.” Both parties are guilty of protecting their vital interests of keeping the money following to their states and districts all under the guise of making sure the troops have what they need.

The President speaks of eliminating waste, but continually the military services receive items that they did not request or want. The president scaled back production or eliminated weapons systems that were relics of the Cold War such as the F-22, but other items eventually are added into the budget. Democratic Congressman John Murtha is prime example of someone who steers defense dollars to his surrogates, but Republican are equally guilty as the past eight years little care was given to how defense dollars were spent.

The nation is teetering on insolvency if we do not start getting our fiscal house in order. The Defense Department needs to overhaul its accounting and procurement system and bring it into the 21st century. Too often the budget has been used as a black hole without any regard to how resources are allocated.

A bi-partisan commission of congressional leaders, retired military personnel, and policy leaders should be tasked with reforming how resources are allocated with the mandate of reforming the spending practices of the Department of Defense.

The empty black hole cannot continue, if left unchecked it will threaten the national security of this nation!

Afghan Debate Continues

The past week we have witnessed the deaths of close to twenty U.S. military personnel serving in Afghanistan and in Washington the president still has not indicated if he will support the troop request given to him by General McChrystal.

Pundits on both sides are actively engaged in vigorous debate on what the Strategy should be in Afghanistan. We all know that President Bush never really sourced the conflict in Afghanistan with enough forces or resources, but that still doesn’t relieve the current administration regarding the situation in Afghanistan. The president’s surrogates consistently blame the Bush Administration for the current situation when in fact in March President Obama laid out a new strategy in Afghanistan when he dispatched additional troops.

The administration in May fired General David McKiernan and replaced him with General Stanley McChrystal as the new ground commander in Afghanistan. On August 29th General McChrystal submitted to the Secretary of Defense his assessment of the situation in Afghanistan after extensive review by many in uniform and among different policy think tanks that cut across the political spectrum.

In September General McChrystal submitted to the Secretary of Defense and to President Obama his recommendation that he would need an additional 40,000 troops to institute a comprehensive counterinsurgency strategy in Afghanistan, if not then the United States would eventually lose the conflict.

These is where the debate stands will the president give General Mchrystal the additional resources, or employ a counter terrorism approach advocated by Vice President Joseph Biden, or listen to his Democratic base with a complete withdrawal from Afghanistan, or something in between.

The president needs to be more forceful on what he plans as the debate is out of control and consistently being discussed in the public arena as it makes the president look indecisive. Everyone has an opinion on the subject and to those in the military the ones to implement that policy they feel he is listening to his political advisors and side stepping the military.

Right now the president consistently blames President Bush, but back in March he instituted his own strategy placed his own general to implement that strategy now complains that we had no strategy. This indecision makes the president look week to our adversaries and to our allies as they will not commit more forces until they know what we will do.

Recent statements by the White House have a decision coming either before or after the November 7th runoff election in Afghanistan, but I am not holding my breath. It seems he is looking for some excuse to justify not sending the resources advocated by his general in Afghanistan.

What About Preventive Medicine In Health Care Debate?

Throughout the Health Care debate the one area that has received little or no consideration is the focus on preventive medicine! Often resources are spent on curing the disease, but little is allocated to preventing the problem in the first place. The United States has an extremely high obesity rate that contributes to the rising cost of health care in this country.

Businesses across the nation have begun to incorporate Wellness programs into their health care plans, but more needs to be done. Any health care reform plan must include some kind of preventative medicine or wellness program.

Study after study has stated the only way to achieve reliable and healthy methods to achieve a healthy body is to exercise coupled with a healthy diet of nutritious foods. There is no secret in maintaining a healthy life style but each individual must take personnel responsibility for themselves.

The first step is exercise pure and simple! You can find many reasons why not to exercise, but it’s still an excuse; everyone has time to exercise! Currently I am in rolled in a martial arts program and I have witnessed many different individual physical fitness levels. Some are in great physical shape and other s are not, but the underlining theme is that these people are out doing something to a healthy lifestyle.

During my martial arts training I have witnessed children with Down Syndrome practicing martial arts. While obtaining my black belt in Kempo, one of the participants was confined to wheelchair and was training and eventually obtained his black belt. Currently I train with a grandmother who enjoys martial arts because she wants to obtain a desired fitness level.

I am not saying that we all have to train in martial arts, but do something! My father is ninety one years old and in excellent health. He attributes is health to eating healthy and regular exercise. His exercise regiment was not going to a gym, but working outside doing gardening and other outside activities. Growing up we were always outside running, biking and other physical activities and with his example as we grew into adulthood we maintained a healthy lifestyle.

Today more of our youth spend more time behind a computer instead of out in the fresh air engaged in healthy pursuits. Can we surmise obesity effects the youth of this nation at an alarming rate!

Before any health care legislation is passed it must include preventive medicine or wellness programs, if not then we as a nation will suffer the consequence of higher health care costs!

End the Partisian Divide and Take Care of America

America faces difficult problems domestically and across the globe, but what do we get from our political leaders is more partisan banter. Both political parties are more concerned with scoring points as Republicans want to making sure that the Democrats fail and Democrats are more concerned now that they have power is to enrich their political power brokers.

The American people want elected officials to work together in bi-partisanship to solve the nation’s problems and not inter squabbling among themselves. We face too many problems with the economic situation that was the result of greed from corporate America to government and finally individual citizens themselves.

With that said now start fixing the problem! American’s want the economy to produce quality jobs, meaningful health care reform that will not add to the mounting deficit.

The nation needs a foreign policy that stabilizes Afghanistan and has a bi-partisan plan not blaming each other as both parties created this mess and we need a meaningful comprehensive strategy that takes ideas from all sides.

Republicans and Democrats start working together!

America and It's Military

Next month we remember and commemorate Veterans Day and reflect on those who have worn the uniform of this nation in defense of liberty. Currently the nation is engaged in two conflicts in Iraq and Afghanistan and each has provided intense debate of the merit of each conflict. The real question of this posting is how many American truly understands what life is like for those who serve in uniform?

The “Greatest Generation” those that served during World War II are now fading into the annals of history and during that time everyone knew someone or had members of their family serving in uniform. Contrast that with today when less than 1% of the nation are serving in uniform and fewer Americans personally know anyone serving in harm’s way.

The debate rages on whether we should send more forces into the battlefield of Afghanistan, but how many Americans are truly effected by the decision of the president if he decides to send in more forces. Most Americans are more concerned if they will have a job or just not concerned, because they have never served or know anyone personally that has served.

Throughout the armed forces this discussion has direct implications as they will be tasked in caring this policy to its completion. Families will be changed; military reservists are contemplating how this affects their employment status, and places a direct hardship on their family as most of the community around them is ill affected by this.

Times have changed since America went off to war some sixty years ago. Everyone supports the troops but do they really? The partisan divide on issues affecting the military is greater than it has ever been, coupled with the fact that most members of congress have never served with only a few who have served.

The political parties have changed in their thought process on military service, one party looks with distain on military service, the other party supports military service, but as long as they or their son’s do not have to serve.

Ivy League colleges have rejected R.O.T.C. programs on their campus for the past forty years always coming up with some new reason that they refuse to have them on campus. Many high schools’s refuse to allow military recruiters on campus, but allow anti-military groups access. These same schools teach anti-military lessons to students and a very distinct version of military history that fails to appreciate the sacrifices of those that have served in harm’s way.

America better remember the sacrifices of those that serve in uniform or someday freedom will look very different than what we expected it to look like; we would have no one else to blame but ourselves!

Change We Can Believe In

I can’t remember a time that I have seen such pessimism in America than at this very moment, with most of the anger directed at Washington! Too often Americans see the bailout of every institution that created this mess in the first place from the auto companies to the financial institutions and even various states. Each of those responsible for the financial mess created this themselves and now Main Street America is forced to bail them out. What Americans see is everything for the perpetrators of this calamity, but nothing for American taxpayer except unemployment and economic despair.

Washington needs to end the partisan bickering and help Main Street! Individual families who have seen the value of their house depreciate and now mortgage lenders refuse to allow them to refinance their homes because the value of their homes are less then they owe.

If Washington wants to end this economic catastrophe then start helping the U.S. taxpayer by allowing home owners who have always paid their mortgage on time the ability to refinance their home. Start by passing legislation that actually creates jobs instead of reducing jobs.

Interesting few of the instigators of this calamity have been brought to justice or members of both political parties that helped create this mess thrown out of office. Both Democrats and Republican created this mess!

Corporate America needs to be held accountable for the miserable way that they have run their companies with the only goal is seeking greater wealth for themselves. Look how the auto companies have been managed over the years as more Americans trust foreign auto companies over domestic companies.

Stop corporate Welfare and force these companies to start modernizing their factories, start by reorganizing our schools where children actually learn and obtain a quality education in both vocational and scholastic studies.

Major companies need to start investing back into their companies instead of looking for short term gain start focusing on the long haul. Once we get back to the basics at the government level, at the corporate level and finally once American realize that you cannot get something for nothing you have earn it will this nation rise to the level that we know this nation can obtain.

Let’s start by rebuilding again the manufacturing base of this nation that actually produces quality products, that invests in research and development. We can re-build America!

America’s better days are not behind us, but ahead, we just have work to for it!

Treasurer Lockyer: pensions will ‘bankrupt’ state

State Treasurer Bill Lockyer, who sits on both the CalPERS and CalSTRS public pension boards, got the attention of his listeners during a legislative hearing yesterday.

“It’s impossible for this Legislature to reform the pension system, and if we don’t it will bankrupt the state,” is the Lockyer quote jotted down by one observer. http://calpensions.com/2009/10/23/treasurer-lockyer-pensions-will-bankrupt-state/

This should have raised more than eyebrows, but should have had the hair on the back of your neck standup. Currently if CALPERS doesn’t have enough funding to cover pensions, then the State of California has to cover the shortfall. CALPERS Board of Directors can make investments but if the investments fail to meet expectations then they know that the state will bail them out. This is what happened during the financial crisis last year, but unfortunately most Californian’s are oblivious to the fiscal mess this state is in. Currently we are seeing Washington take the same route that California is going; soon we will all be like California. Kiss economic growth goodbye!!

Don't Look Now--it's a second stimulas

A second stimulas won't fly with some Americans, despite the fact that Warren Buffet, joseph Stiglitz and other experts have called for one.

That's why, even though the White House willlikely puch something that walks and talks like a stimulas, no one will call it the "S" word. http://blogs.moneycentral.msn.com/topstocks/?fpn=don%20t%20look%20now%20it%20s%20a%20second%20stimulus

This would contradict everything this administration states on the impact of the stimulus on the economy. President Obama stated that the passage of the stimulus would stabilize unemployment at around 8%, but unemployment is now 9.8% and projected to go higher. Vice President Joseph Biden stated that that stimulus is working; the very next day unemployment went up. If the administration truly wants to jump start this economy then start helping small businesses. Ease the credit crunch that hampers the growth of small business, remove burdensome regulation, and stop Cap & Trade legislation that will place undue burden on the backs of business thus stifling economic growth. Finally start getting the federal deficit under control, both administrations failed in this area. Another stimulus proves that the first one failed and that this administration is no different than the last one on improving the economy.

Responding to the growing furor over the paychecks of executives at companies that received billions of dollars in federal bailouts, the Obama administration will order the companies that received the most aid to deeply slash the compensation to their highest paid executives, an official involved in the decision said on Wednesday. http://www.nytimes.com/2009/10/22/business/22pay.html?hp

No wonder Americans are so cynical about politicians, the only reason Washington is getting involved now is because of the public backlash! What have they been doing all this time?

Is Afghanistan Impossible for Obama?

Just over two weeks before a high-stakes runoff for the Afghan presidency, the Obama administration faces mounting pressure to decide on its Afghanistan strategy and whether or not to send more U.S. troops. http://abcnews.go.com/Politics/karzai-abdullah-runoff-buys-time-obama-troop-decision/story?id=8877851

It seems this president is looking for any excuse not to send additional troops that his appointed ground commander had asked for. Each day that passes there is another excuse as why we have to wait, next month it will be the after the holiday or some other reason. Leadership is making decisions not waiting for someone else to make the decision for you. You wanted to be president, now lead!

Obama Expanding Bailout to Small Banks, Businesses

President Barack Obama wants smaller community banks to ahve greater access to the government's $700 Billion financial rescue fund as the administration refocuses the bailout money on small businesses and homeowners and winds down programs aimed at big banks. http://www.foxnews.com/politics/2009/10/21/obama-expanding-bailout-small-banks-businesses/

Washington still doesn’t get it! You can help small businesses out with a financial rescue plan but it still creates additional problems in other areas. Washington professes to help small businesses in one breath, but in the other it passes or pushes legislation that is harmful to the business community. Right now small businesses are reeling from the credit crisis, the debate over health care reform and whether it will result in higher taxes as being contemplated by many in Congress. Climate change legislation being floated will harm the businesses community; even the Congressional Budget Office (CBO) stated that it would hurt the businesses community and have the opposite of its intended result. Washington keeps wanting to expand economic growth but then does everything it can stifle economic growth; maybe if more elected officials have ran a business instead of working in government they would know the difference in how to jump start this economy!

The Fleecing of America

While Americans suffer with joblessness and downright anxiety of pessimism over the direction of the nation’s economic outlook, again we read about the excesses of Wall Street. Washington complains but nothing happens! Americans just witness more and more taxpayer dollars going to Banks, financial institutions and the auto industry, but nothing for average Americans. If you follow the money I would safely bet that bailout money went to firms that spent heavily on campaign contributions to politicians that benefited from their support. I guess this is what change we can believe in!

John Kerry: Strategy depends on Afghans

White Hosue Chief of Staff Rahm Emanuel and Senate Foreign Relations Committee Chairman John Kerry (D-Mass) said Sunday that Afghanistan must install a legitimate government before the president sends more U.S. troops to the country. http://www.politico.com/news/stories/1009/28450.html

I am not sure how much trust that I have in Senator John Kerry to give correct advice! Let’s look at his track record, he voted against the first Gulf War, voted for the war in Iraq, then later voiced opposition against the conflict in Iraq. Senator Kerry then opposed the surge into Iraq that proved successful, now opposes a similar surge of U.S. forces into Afghanistan that the ground commander advocates, mush like General David Petraeus initiated in Iraq. It seems that Senator Kerry seems to make decisions by the way the political wind shifts, what we need is someone who makes decisions by what is right, not what a poll tells him!

High jobless rates could be the new normal

Even with an economic revial, many U.S. jobs lost during the recession may be gone forever and a weak employemnt market could linger for years. http://www.msnbc.msn.com/id/33384835/ns/business-stocks_and_economy

Washington is bankrupt with ideas on how to fix the ailing economy; the real reason is few politicans have actually run a business! This country needs to have our manufacturing base focus on running a business correctly instead of looking at short term profits. Make vehicles that the consumer want and always anticipate the needs of the consumer before they know they want it. The I-Phone is a prime example of giving the consumer something they did not know they need, not it’s the hottest thing out there! The U.S. manufacturing base is old and operating utilizing antiquated factories, but what does Washington implement by giving the steel companies billions of dollars in subsidies that they use to line their pockets instead of investing in modernizing their facilities. We can have the economy grow but we need to focus on basic business practices, not greed implemented at the corporate, government and personnel levels. Washington is the problem not the solution!

White House plan: Neuter the Chamber

The White House and congressional Democrats are working to marginalize the Chamber of Commerce--the powerful business lobby opposed to many of President Barak Obama's first-year priorities--by going around the group and dealing with the CEO's of major U.S. corporations. http://www.politico.com/news/stories/1009/28445.html

Again, Washington just doesn’t get it! They move to marginalize the U.S. Chamber of Commerce and meet directly with the CEO’s of various corporations, the question becomes when does small business have a seat with the president? It seems that small businesses are left out in the cold, when does the president and those professing to speak for main street America get to have their voice heard. I guess if you give major contributions to both political parties then you will have a voice, if you do not then you are just speaking into the wind. Take care of main street America and you will have economic growth, shut our small businesses and you will have economic stagnation!

When U.S. economy recovers, will California be left behind?

California lost one of its Fortune 500 companies the other day when Science Applications International moved its headquarters from San Diego to McLean, Va.

The announcement came not long after Toyota announced that it would shut down California's last auto assembly plant, and the two corporate moves provided new fodder for the never-ending debate over California's business climate.

The debate has taken on a sharp edge during the worst recession since the Great Depression, raising fears that as the rest of the nation recovers, we won't. http://www.sacbee.com/capitolandcalifornia/story/2261042.html

For those of us living in California this is something we already know, but unfortunately the rest of the nation will feel the effects of California’s dysfunctional system of governing. We are witnessing the California effect in the policies emanating from Washington as it continues California’s anti-business climate, even though it professes its economic growth policy. Too often rhetoric doesn’t match reality, with every legislative bill that comes from Washington it consistently makes it harder for businesses to operate in this country. Too often we hamstring business by passing confusing regulation, conflicting environmental legislation, passing pro-labor laws that have an unintended consequence of stifling economic growth. One only has to look to the auto industry and our manufacturing base as examples. If Washington follows California’s example then economic growth will fizzle and retract to unimaginable levels.

Washington Fails to Listen to Main Street

Lately it seems that Washington only seems to listen to corporate America and Wall Street at the expense of main street America. Individual Americans are suffering, while Washington bails out the auto industry, banks, and the financial institutions, leaving main street America to fend for themselves. Hard working Americans face joblessness, mortgage stagnation of not being able to refinance their homes, often Washington’s only answer is to spend more money, tax more, increase the enormous burden on the backs of hard working people. If they want to start to help America, start my helping the little guy not corporate America.

Federal deficit triples from year ago

The federal budget deficit has surged to an all-time high of $1.42 trillion as the recession caused tax revenues to plunge while governemtn was spending massive amounts to stabilize the financial system and jump-start the economy. http://www.msnbc.msn.com/id/33348615/ns/politics-more_politics

The only way to jump start the economy is begin by helping small businesses! Since President Obama was inaugurated all we have gotten out of Washington is more government spending, more legislation that hampers small businesses, bailouts to major corporations and the financial sectors. Very little has been done to ease the burdens on small businesses by easing the credit crunch, enacting tort reform, easing burdensome regulatory reform, and tax relief. There are host of other issues, but small business doesn’t have the number to Washington power brokers like the banks and corporate America. Help the little guy and you help America.

Deficit Rises to Record Level

Both parties in Washington have contributed to the massive federal deficit that if continued will hamper economic growth in the future. Currently Republicans lambast the free spending ways of Democrats now in control of Congress and President Obama, but for the past eight years they did little to stem the tide of red ink that Washington had amassed. Currently President Obama and Democrats in Congress have done nothing or put forth fiscal policy on how they would eliminate the enormous budget deficit.

To reduce the federal deficit Washington would have to stop it’s free spending ways. The current debate over Health Care Reform currently being debate only will add to the budget deficit as neither party are using sound economic principle on how they would pay for reforming the nations health care system. Democrats now in charge of all levers of power in Washington consistently pursue and pass legislation that has the opposite effect of creating economic growth.

The Democrats look pack to the bygone days when President Clinton had balanced the federal budget back in the 90’s. Both Democrats and Republican claim that they were the stewards’ of fiscal discipline, but both parties miss the mark.

The true benefit should belong to the American people! President Clinton in his first two years of office ran as a typical tax and spend liberal by raising taxes and increasing spending. His disastrous health care reform plan failed miserably and was one of the reasons the Republicans were able to gain majority rule in both Houses of Congress. The next six years each party stymied the other one, by which the Republican could not pass any tax cuts and the Democrats could increase spending.

Growth was centered in the private sector as computer technology transformed the American economy not seen since the advent of mass industrialization at the beginning of the twentieth century. Computer technology entered into all phases of American life and transformed how business operates. Small business and entrepreneurs’ thrived thus creating economic growth and allowing billions to flow into the treasury coupled with no large public expenditures allow the deficit to be reduced.

If Washington wants to increase economic growth then start helping small businesses and entrepreneurs instead of crippling them which is the current economic policy coming from Washington and this administration.

Orange County Dodged Bullet by Avoiding Calpers

Orange County had a chance three years ago to join the California Public Employees' Retirement System. Instead, county leaders stayed with a small Orange County pension fund, and now they feel vindicated for their stay-local strategy. http://online.wsj.com/article/SB125565081254388929.html#mod=todays_us_page_one

Orange County learned a lesson from questionable management in the early 90’s, unfortunately California Public Employees’ Retirement System (CALPERS) didn’t! The real pain will now be felt by the tax payers of this state!

Cap-and-Trade Would Slow Economy, CBO Chief Says

A House-passed bill that targets climate change through a cap-and-trade system of pollution credits would slow the nation's economic growth slightly over the next few decades and would create "significant" job losses from fossil fuel industries as the country shifts to renewable energy, the head of the Congressional Budget Office told a Senate energy panel Wednesday. http://www.washingtonpost.com/wp-dyn/content/article/2009/10/14/AR2009101404054.html

Here we go again Washington professes to creating jobs, but then again it pushes legislation forward that hampers economic growth. Cap & Trade passed the House in July, but stalled in the Senate when moderate to conservative Democrats put a halt to it after being blasted by their constituents. A segment was added into Cap & Trade legislation at the midnight hour that added environmental changes unto residential and commercial properties before they are sold. As with the Stimulus Package, most members could not possibly have read over 1,000 pages of the legislation before voting on it. There language inserted left it ambiguous as to what those environmental changes would be. Washington constantly wants to create economic opportunity but again it passes legislation making it harder for small businesses to generate economic growth. Maybe if more members in Washington actually ran a business at some point in their life, instead of attorneys this nation would be better off.

U.S. troop funds diverted to pet projects

Senators diverted $2.6 billion in funds in a defense spending bill to pet projects largely at the expense of accounts that pay for fuel, ammunition and training for U.S. troops, including those fighting wars in Iraq and Afghanistan, according to an analysis. http://washingtontimes.com/news/2009/oct/15/troop-funds-diverted-to-pet-projects/

Both political parties in Washington are more concerned with taking care of themselves then those fighting for the beliefs they profess. Again different party in charge but the same old system is in place take care of yourself, and forget about the armed forces of this nation. No wonder the American people look at politicians as used car salesman; their all the same!

More Pain for State's Taxpayers, Cities

The cost of shoring up Calpers, the troubled $200 billion pension fund for California public employees, will ultimately fall on the state's 38 million residents, who are already dealing with tax increases and reduced public services.

Wall Street Journal- http://online.wsj.com/article/SB125556625187286301.html

Sacramento Bee-http://www.sacbee.com/business/story/2254804.html?mi_rss=Business

Capital Weekly-http://www.capitolweekly.net/article.php?xid=ycaol6koumdme9

Sacramento Bee-http://www.sacbee.com/business/story/2254595.html?mi_rss=Business

Can anyone wonder why California is in financial meltdown! Again the taxpayers of this state are on the hook for all the excesses of the past years, when public employees were given lucrative pension benefits without any thought of how they were to be paid. This is being repeated throughout California as every local government is facing daunting challenges how they are going to come up with the funding to pay for public employee pensions. I guess the tax payer will step up to cover the shortfall while there pension gets depilated. How ironic!

All hail Dow 10,000--but what's next?

Go ahead and cheer. The Dow Jones industrials moved above 10,000 for the first time in a year. http://articles.moneycentral.msn.com/Investing/Dispatch/default.aspx?feat=1318780&GT1=33009

Before everyone starts rejoicing that the Dow Jones had crossed the mythical 10,000 barrier today, had better look around as there still a strong sense of uncertainty in the economy. Wall Street may jump for joy but Main Street and small business still feel the effects of the economic downturn. As the debate shifts into high gear, small businesses are waiting to see what the outcome of Health Care Reform will be, will taxes be raised, what will be the final outcome of Cap & Trade and a host of other issues that affect the bottom line of small businesses across this nation. Washington seems to listen to corporate America and not small businesses or the American people. It’s too early to tell what the affects will be, but I am not holding my breath Washington will get it right!

Finance Committee Passes Bill With One GOP Vote

As the last of five congressional committees completed work Tuesday on a health-care reform package, lawmakers braced for a debate before the full House and Senate about whether Americans are ready to embrace the far-reaching changes necessary to extend coverage to millions of Americans. http://www.washingtonpost.com/wp-dyn/content/article/2009/10/13/AR2009101300998.html?hpid=topnews

Before everyone gets excited there still is a lot of work to be done before the health care bill is passed and the president signs it. With all the talk of transparency it isn’t likely we will see it with Health Care Reform as all discussions now will be behind closed doors to hammer out the final details. The final analysis is what will be in the final bill? Will they include the public option? Will it restrain costs? Will it be implemented immediately or implemented in the future as currently written? Will it raise taxes and will the cuts be made start right away or phased in over time? There are numerous unanswered questions! This time will Congress read the actual final Health Care legislation before it becomes law; remember the Stimulus Bill and Cap & Trade!

Who's Protecting Your Rights?

Governor Schwarzenegger, you have just signed a severe yet impotent gun control measure into law. Assembly Bill 962. By signing this legislation and requiring ammunition retailers to store ammunition away from purchasers, you have added an additional burden to an already difficult economic situation. AB 692 also failed to garner support from Attorney General Brown, and any law enforcement organization. In fact, 15 sheriffs wrote letters of opposition to this legislation. You should listen more to them than the media.

This law presents intrusive and unnecessary burdens that will only affect law-abiding firearm retailers and gun-owners…not criminals, I echo the words of NRA spokesman Chris Cox, as well as many of my associates when I say that at a time when California is facing dire budget problems, California has squandered valuable resources in policing law-abiding Californians instead of investing in substantive measures that target criminals, as well as implementing those laws already on the books to do the same. More than two decades ago, Congress abolished similar requirements to U.S. federal law because ammunition sales records were found to be ineffective for solving crimes. It is indeed regrettable that foolish minds and bogus arguments prevailed over common sense and empirical evidence. We won’t mention anything at this time about these individuals blatant disregard for our second amendment rights.

Governor Schwarzenegger, thank you for vetoing Senate Bill 585, a bill that would have prohibited the sale of firearms and ammunition on the property or inside the buildings that comprise the Cow Palace in Daly City, just outside of San Francisco, and for signed Senate Bill 175, which will exempt gunsmiths from a vague California law. This is a common sense exemption that will now allow for the exchange of a firearm to or from a gunsmith for purposes of service or repair.

“Governor, you acted in the interest of good public policy with your actions to SB 585 and SB 175. But, in signing AB 962, you have paved the way for one of the most intrusive and ineffective gun control laws that California has seen in recent years. Please know that my associates and I will be actively involved and participation with the National Rifle Association and other organizations as they review all possible options to remove this draconian requirement from California statute, and will participate where ever possible as they assess legislative and legal remedies to do so.

Despite New Deficit-Cutting Claim, Baucus Bill Is Just Tax-and-Spend

The Senate Finance Committee's version of health care reform is being hailed as a model of bipartisan moderation. One Republican may even vote for it.

And it's undeniably an improvement over the bill approved early by the Senate Health, Education, Labor, and Pensions Committee, or the one making its way ever so slowly through the House.

But that's a low bar. In reality, the Finance Committee bill still represents a radical government takeover of the U.S. health care system. http://www.cato.org/pub_display.php?pub_id=10622

Again, Washington needs to look at all aspects of how funding will go into any reform of the nation’s health care system. The report release last week by the Congressional Budget Office on the Baucus Bill was only a preliminary assessment of the cost, but the final analysis would have to look at the final bill before it became law to know the true cost of health care reform. Washington had better be careful and make sure it’s projections are accurate as not adding to the federal debt. Unfortunately, Washington has never been accurate before so why should we expect them to hit the mark this time.

Dems infight over health bill funding

Speaker Nancy Pelosi has a tax problem: The so-called millionaire's tax that her fellow Democrats wantto use to pay for the bulk of htier health care legislation won't keep pace with rising costs. http://www.politico.com/news/stories/1009/28208.html

Washington better get this right if they don’t they will add to the mounting federal deficit and further depress any economic growth of this nation.

Back From the Death Panel

How the public option, helped by a congressman looking for an issue and a shrewdly silent White House, returned from the brink.http://nymag.com/news/politics/powergrid/59907/

The question that I have for those that support the public option and the one question that has not been asked is where does the money come from and how much will it cost to establish the public option? We have seen how the Cash for Clunkers and the New GI Bill have been run and other government programs, do we really think the government will do a better job of running the nation’s health care system! Before they vote on this Washington better make sure that they have it right or we the taxpayers will be paying a high price for their lack of foresight.

Time for Decisiveness on Afghanistan

Obama needs to get behind his chosen general and put the spectacle of indecisiveness behind him. Otherwise, in the coming months, the Democrats may be seen as having lost a war. And if that happens, not even the Nobel Peace Prize will rescue his reputation. http://www.theatlantic.com/doc/200910u/obama-afghanistan

The president has to get control of the debate ragging whether to send more troops to Afghanistan or face the withering political fallout of his indecisiveness. The president is letting the media and political pundits dictate the strategy in Afghanistan, he needs to take the debate back or be seen as high jacked by the situation in Afghanistan.

The Economic Recovery Is Well Underway

New job growth will follow this year or in 2010, but new tax burdens could keep unemployment higher than it should be. http://online.wsj.com/article/SB10001424052748703298004574459403222100882.html

All this is predicated on what happens in Washington in the coming months. Everyone is waiting to see what the final outcome will be on Health Care Reform, Cap & Trade, and the scope of any tax increases now being floated by Congress. A recovery will take place at some point but it will be a jobless recovery as Washington has done nothing to help small business. Small businesses are the true backbone of this country with 80% of all Americans working for small business then large corporations. Unfortunately Washington seems to only look at the concerns of Corporate America at the expense of Small Business. Then you have to look at the deplorable situations of the fiscal stability of the states; especially California! If California can’t fix itself financially then it will be a drag on the national economy. The downward spiral of economic uncertainty will only continue!

Steep losses pose crisis for pensions

The financial crisis has blown a hole in the rosy forecasts of pension funds that cover teachers, police officers and other government employees, casting into doubt as never before whether these public systems will be able to keep their promises to future generations of retirees. http://www.msnbc.msn.com/id/33264342/ns/business-washington_post

Everyone needs to stop blaming the recession for every problem that exists in this country. The real problem is that the nation is still paying for the exuberance of the last ten years when politicians gave over generous pension benefits to public employees without any care how that was going to be paid over the course of the retirees lifetime. State and local government throughout California are facing this real problem, unfortunately again it’s the taxpayer to the rescue. The problem how to tell the taxpayer that you will have to fund generous government pensions when yours is a fraction of theirs! The headache begins!

Obama urges creation of agency to regulate financial industry

President Obama tried to build momentum for the centerpiece of his overhaul of financial regulations -- a new agency to protect consumers -- by aiming to derail the strong opposition from business groups that threatens its passage by Congress. http://www.latimes.com/business/la-fi-obama-regulation10-2009oct10,0,2185841.story

Before we create another government agency to regulate the financial markets, we need to reform what the current regulatory agencies were or were not doing that created the financial situation that we are in. Creating another regulatory agency would create more bureaucratic entanglements that would overreach and will have over intended consequences that stifle economic growth. The real problem is that Washington is too cozy with Wall Street and corporate America. The culprit is both parties in Washington who enrich themselves and their cronies at taxpayers expense. Clean up Washington and you clean up Wall Street!

Report: Reining in lawsuits would cut deficit

The Congressional Budget Office - in an analysis that projects a nearly10-fold increase in savings over its findings last year - said tort reform would cut costs by limiting the use of diagnostic tests and other services health care providers and doctors use to reduce exposure to lawsuits. http://www.washingtontimes.com/news/2009/oct/10/health-care-tort-reform-a-savings/?feat=home_headlines

Surprisingly Washington left out tort reform in any of the health care reform bills currently under consideration; could it be that most of the politicians in Washington are attorneys! If Washington truly wants to reduce the deficit, tort reform has to be considered. If you want to spur economic growth and help small businesses then reform lawsuit abuse that handcuff small business. Don’t count on this happening anytime soon!

A dangerous secret to the Baucus health bill

Hidden in the Senate's health-care bill are huge incentives for corporate America to stop covering their workers. If that happens, the deficit could skyrocket. http://money.cnn.com/2009/10/08/news/economy/baucus_health_care.fortune/index.htm?postversion=2009100915

Before Washington votes on the most dramatic change in reforming health care in this country we better look at all aspects of this or we as a nation will pay a huge financial price for our lack of foresight.

California Budget Is Already in the Red 10 Weeks After Passage

California Governor Arnold Schwarzenegger will know within a month whether a $1.1 billion drop in revenue collections is part of a growing budget shortfall or an isolated event, his budget spokesman said.

Revenue in the three months ended Sept. 30 was 5.3 percent less than assumed in the $85 billion annual budget, state controller John Chiang reported yesterday. Income tax receipts led the gap, as unemployment reached 12.2 percent in August. http://www.bloomberg.com/apps/news?pid=20601087&sid=ahpLpu9sKLyY

California can blame the recession all it wants for its fiscal mess, but the real culprit is Sacramento! Its free spending ways and lack of sound economic policies from both political parties have led California to where it is. It will only get worse until Sacramento wakes up to fiscal reality, but unfortunately Washington is headed in the same direction of California; toward a fiscal train wreck!

As the federal government propped up the housing market and braced for the collapse of General Motors this spring, Treasury Secretary Timothy Geithner capped a busy week with phone conversations with three men.

The first was Lloyd Blankfein, the CEO at Goldman Sachs Group Inc.

The second was Jamie Dimon, the CEO at JPMorgan Chase & Co.

The third was President Barack Obama.

Dimon and Blankfein are members of an exclusive club: Along with executives at Citigroup Inc., they are among a cadre of Wall Street executives who have known Geithner for years, whose multibillion-dollar companies survived the economic crisis with his help, and who can pick up the phone and reach the nation's most powerful economic official. http://www.realclearpolitics.com/news/ap/politics/2009/Oct/08/wall_street_speed_dial_gets_tim_geithner_directly.html

The problem with this administration and the previous one is that Washington is more concerned with the needs of Wall Street and corporate America than with the true engine of economic growth; the small business owner. While all the attention is focused on Wall Street, the auto industry, and major banks, what is lacking are the needs of small business owner across America. Do small business owners have the access to the Secretary of Treasury or Washington power brokers; I highly doubt it. Small businesses face enormous challenges from higher taxes, status of international trade, Cap & Trade legislation, higher budget deficits, and finally how does the current debate on health care affect their bottom line. Each of these areas prevents small businesses from employing more people and expanding their business. Right now a cloud of uncertainty hangs over them like the “Sword of Damocles” from Greek mythology. Until Washington addresses their concerns economic growth will not materialize.

Select committees pay lawmakers' staffers

Nearly two dozen special legislative committees with paid staffers - some who make more than $100,000 a year - have not held a single meeting all year, a Chronicle review has found.Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/10/09/MNRS19VQBA.DTL#ixzz0TTdxgtP3

Too reform California's budget process first start with Sacramento where the real problem is! Until that happens California will continue to face a cronic budget meltdowns.

Some state retirees rake in pensions and paychecks

As California's public retirement funds reel from losses of nearly $100 billion in recent years and lack enough cash to cover their long-term costs, thousands of state employees are collecting government pension checks along with their paychecks. http://www.latimes.com/news/local/la-me-double-dip9-2009oct09,0,834754.story

Does anyone wonder why the State of California is in such dire financial shape. Here is why, its only millions compare to the billion dollar state budget, but it all adds up.

White House Faces Pressure on Jobs

Eight months after enacting a massive economic stimulus package, the Obama administration is facing rising pressure from some congressional Democrats to move more aggressively to jump-start the moribund job market and try to spur a housing recovery. http://www.washingtonpost.com/wp-dyn/content/article/2009/10/08/AR2009100804330.html?hpid=topnews

Again, Washington doesn’t get it! If you want to improve the employment outlook for this nation start helping small business! The president can meet with various corporations, but he has failed to meet with the true engine of economic growth in this country; small business owners. Small businesses are getting rake across the coals from high health care costs, cash flow problems, the inability to get credit, lawsuit abuse, a burdensome regulatory climate and a host of other issues. All Washington has to do is look at California, but it seems Washington is going the same way!

CBO: Budget Deficit Hit Record $1.4T in 2009

The federal budget deficit tripled to a record $1.4 trillion for the 2009 fiscal year that ended last week, congressional analysts said Wednesday. http://abcnews.go.com/Politics/wireStory?id=8776309

Both Democrats and Republican are responsible for the mess that we are in! Everyone was complicit in the financial meltdown of our financial institutions last year; no one is exempt of why we are in the mess that confronts this nation. You can spin it all you want, you can blame the other party or President Bush, but the fact remains both Democrats and Republicans are to blame! Until this nation wakes up and forces Washington to get its fiscal house in order we are in a downward spiral as a nation. Lets wake up America!

Billions are spent to defend 5,000 jobs at Boeing C-17 plant

In approving a $626-billion military budget for fiscal 2010 this week, the Senate threw in $2.5 billion for 10 more C-17s to be built at Boeing's aircraft factory on the outskirts of Long Beach Airport. http://www.latimes.com/business/la-fi-hiltzik8-2009oct08,0,5007140.column?track=rss

In a previous blog I posted how billions of dollars was to be added to add more C-17 cargo aircraft to the air force inventory noting that the Air force neither asked nor wanted the aircraft. This is plainly pork barrel spending to appease congressional and senate members. Its pork barrel spending at its pure form, no wonder the deficit keeps rising. Too often the military gets equipment it does not want but Congress keeps spending on programs and weapons systems just to enrich one’s own self. Different party in power, but still same results! Tax payers lose again!

Ex-Staffers Winning Defense Panel Pork, Study Finds

In the coming year's military spending bill, members of a House panel continue to steer lucrative defense contracts to companies represented by their former staffers, who in turn steer generous campaign donations to those lawmakers, a new analysis has found. http://www.washingtonpost.com/wp-dyn/content/article/2009/10/07/AR2009100704099.html

With all the talk of ending business as usual last year, I guess its still business as usual just a different party in power. Too bad it’s the troops and the taxpayers that pay!

Agency predicts health care bill will cost $829 billion

A compromise health care proposal widely seen as having the best chance to win Democratic and Republican support would cost $829 billion over the next 10 years, nonpartisan budget analysts concluded Wednesday.

http://www.cnn.com/2009/POLITICS/10/07/health.care/index.html

The Congressional Budget Office released its preliminary findings on the cost of the Senate’s Finance Committee’s amended bill or the Baucus plan. The preliminary findings stated that it would cost $829 billion over the next ten years and would not add any additional cost to the deficit. There still are a lot of assumptions in this preliminary report that will have to stand up to time. First it assumes that $400 billion dollars will be cut from Medicare and the fees that will be enacted will materialize. The final report is the one that we need to be concerned with and there is still a lot of rankling that will happen before that takes place. Before the final version gets voted on, most of the debate will be behind closed doors. Hardly the open debate we would have expected! Will congressional and Senate members have time to read it before they make their vote? We saw what happened with the stimulus and cap and trade bills. I still don’t trust Washington on this, if they get it wrong we pay not them!

Charlie Rangel retains Ways and Means gavel

Democrats easily rebuffed another Republican attempt to remove Rep. Cahrles Rangel from his chairmanship of the Ways and Means Committee on Tuesday. But there was a small sign of eroding support for the embattled New York Democrat: Mississippi's two House Democrats voted against him.
http://www.politico.com/news/stories/1009/28038.html

This is why Americans have a dim view of politicians. It’s not a Democrat or Republican issue we just want our elected officials to be treated to the same standard that we do. Can anyone expect that we would be given the same treatment if we did the same thing? Different party in Washington, but the same results!

Remarks by General Stanley McChrystal in London

It’s amazing the zeal and downright pointed arguments that have been made regarding Gen. Stanley McChrystal’s argument in London last week. Did anyone even read or listen to what he had to say! It seems the media and their surrogates only portrayed a portion of what was said but left out a part that went counter to their argument. You have an opportunity to read the text of his speech here and you decide if he was disloyal! I don’t see it! http://www.iiss.org/recent-key-addresses/general-stanley-mcchrystal-address/

Obama Weighs Spending to Stem Job Cuts Without Second Stimulus

President Barack Obama is considering a mix of spending programs and tax cuts to respond to widening job losses that would amount to an additional economic stimulus without carrying that label. http://www.bloomberg.com/apps/news?pid=20601087&sid=aRuiJDCk.HD4

If Washington truly wants to stem job loses it must do more to help small business! Many small businesses have cash flow problems, unable to get credit, face a bureaucratic regulatory climate, burdensome tax system and a legal system that places litigation above everything else. Washington needs to talk to small business owners and they will find out what is real going on across America. Too often Washington only works for the large corporations as evident with bailouts going to Wall Street and large corporations such as the Auto industry. Start taking care of small business and you will see economic growth immerge; if you don’t then you will only see higher unemployment.